The country moved up from 45th to 44th place among 64 economies in the World Competitiveness Report prepared by the IMD of Switzerland. The report highlights more efficient management of tax matters, as well as important advances in technological infrastructure.
Chile moved up one place in the ranking in the Global Competitiveness Report 2023, prepared by the International Institute for Management (IMD) of Switzerland. The country has climbed from 45th to 44th place out of 64 economies.
This puts Chile back at the forefront of global competitiveness in Latin America.
The report, which has been prepared in collaboration with the Management prepared in collaboration with the Management Department of the School of Economics and Business of the Universidad de Chile since 1999, highlights the key challenges that Chile must face in order to improve its competitiveness.
What are Chile's advantages in global competitiveness?
Regarding the indicators analyzed in the report, Chile has shown outstanding improvements in areas such as Public Finances. The country has risen from 22nd to 15th place in this aspect, which indicates more efficient and robust tax management.
Likewise, there has been an advance in infrastructure, rising to 41st place and advancing six places with respect to the previous analysis.
It is also possible to observe how Chile has managed to consolidate itself as a Digital Hub in Latin America. According to the report, Chile has climbed to 30th place in terms of technological infrastructure, eight positions higher than last year.
What are Chile's challenges regarding global competitiveness?
Among the areas in which setbacks were recorded, we see Chile's economic performance dropping from 50th to 52nd place, and government efficiency dropping from 30th to 32nd place.
Other challenges include reinforcing public safety by strengthening the police force; guaranteeing a strong rule of law; closing the constitutional reform process with ample social agreement; and reaching consensus on tax pension reforms to reduce uncertainty.
It also highlights the importance of boosting productivity through training programs in new technologies and artificial intelligence, as well as improving the quality and relevance of education at all levels.
Global competitiveness in Latin America
After Chile, Peru ranks 55th in the region, followed by Mexico in 56th place and Colombia in 58th place. Latin America also closes the ranking of the 64 countries, with Brazil at number 60, Argentina at 63 and Venezuela at the very end.
Denmark, Ireland, and Switzerland led the 2023 ranking, occupying the top three positions. These countries, along with Singapore in fourth place, stand out for their ability to take advantage of access to international markets and trading partners.
Ireland made a big leap, rising to the number two position from 11th last year. The country's strength lies in its economic robustness.
China and Germany used to rank in the top 20 until 2022. This year, however, both ranked further behind. The Asian giant ranked 21st and Europe's leading economy 22nd. Two other nations that have been losing competitiveness are Latvia and New Zealand, which fell 11 and 10 places, respectively.
Meanwhile, the United States remained in the top 10, but dropped six places in the last five years despite its economic power. What affected its score? The indicators that make it less competitive are business outlook and government efficiency.
To find out what other organizations, like the World Economic Forum (WEF) or Transparency International, have to say about Chile, check out the following article.